be provided for in one mortgage insurance program for health facilities (section 503). The existing land development program would be retained (section 505). One supplemental loan program (section 504) would consolidate three existing programs. The existing home improvement and mobile home program would be retained but in simplified form (title III). Title I of the proposed Act contains general provisions relating to the insurance programs, such as ones dealing with interest rates and maximum mortgage amounts. Title II contains provisions relating to insurance funds, insurance premiums and other fees. Title VI deals with insurance claims, and title VII contains miscellaneous provisions.

A full identification of the variations from existing law occurring as a result of the consolidation and simplification is contained in the accompanying detailed cross reference table. Some of the more important changes are discussed in this statement, particularly those involving the subsidized housing programs, while other changes are used to illustrate the consolidation process. Also accompanying this statement is a table showing the volume of insurance activity under various existing programs, which serves to indicate the degree of usefulness of many of the programs in their current form.

Title I General Authority

Definitions

Many of the technical terms used throughout the Act are defined in one provision, in contrast to the scattering of definitions found in the National Housing Act. The terms "first mortgage", "mortgagee", "mortgagor",

"home mortgage", "project mortgage", "maturity date", "condominium", "experimental property", "State", and "Secretary", would be defined in substantially the same way these terms are used in the National Housing Act. In addition, the meaning of the term "advances" would be broadened to permit advances of insured mortgage proceeds during construction or rehabilitation of projects to finance the cost of materials and building Components which are located off-site but which will ultimately become part of the mortgaged property. This change should make it easier for some builders to make greater use of preassembled components. General Insurance Authority

Various general insurance authorizations which are repeated numerous times in the National Housing Act are consolidated into one section. In place of the several terms used in the National Housing Act which serve to describe standards of insurability ("economic soundness", "acceptable risk", "acceptable risk giving consideration to ...") two new descriptive terms would be used: "insurable risk" and "special risk". The "special risk" category would be limited to mortgage transactions involving assistance payments, experimental property, property located in an older and declining area, or single-family housing for employees of research or development installations. The "insurable risk" category is intended to provide for enough flexibility to assure a continuity in accommodating the other special assistance transactions selected by the Congress in the past.

be provided for in one mortgage insurance program for health facilities (section 503). The existing land development program would be retained (section 505). One supplemental loan program (section 504) would consolidate three existing programs. The existing home improvement and mobile home program would be retained but in simplified form (title III). Title I of the proposed Act contains general provisions relating to such as ones dealing with interest rates and

the insurance programs,

maximum mortgage amounts.

Title II contains provisions relating to

insurance funds, insurance premiums and other fees. Title VI deals with insurance claims, and title VII contains miscellaneous provisions.

A full identification of the variations from existing law occurring as a result of the consolidation and simplification is contained in the accompanying detailed cross reference table. Some of the more important changes are discussed in this statement, particularly those involving the subsidized housing programs, while other changes are used to illustrate the consolidation process. Also accompanying this statement is a table showing the volume of insurance activity under various existing programs, which serves to indicate the degree of usefulness of many of the programs in their current form.

Title I General Authority

Definitions

Many of the technical terms used throughout the Act are defined in

one provision, in contrast to the scattering of definitions found in the National Housing Act. The terms "first mortgage", "mortgagee", "mortgagor "

Thome mortgage", "project mortgage", "maturity date", "condominium", "experimental property", "State", and "Secretary", would be defined in substantially the same way these terms are used in the National Housing Act. In addition, the meaning of the term "advances" would be broadened to permit advances of insured mortgage proceeds during construction or rehabilitation of projects to finance the cost of materials and building Components which are located off-site but which will ultimately become part of the mortgaged property. This change should make it easier for some builders to make greater use of preassembled components. General Insurance Authority

Various general insurance authorizations which are repeated numerous times in the National Housing Act are consolidated into one section. In place of the several terms used in the National Housing Act which serve to describe standards of insurability ("economic soundness", "acceptable risk", "acceptable risk giving consideration to ...") two new descriptive terms would be used: "insurable risk" and "special risk". The "special risk" category would be limited to mortgage transactions involving assistance payments, experimental property, property located in an older and declining area, or single-family housing for employees of research or development installations. The "insurable risk" category is intended to provide for enough flexibility to assure a continuity in accommodating the other special assistance transactions selected by the Congress in the past.

R

be provided for in one mortgage insurance program for health facilities (section 503). The existing land development program would be retained (section 505). One supplemental loan program (section 504) would consolidate three existing programs. The existing home improvement and mobile home program would be retained but in simplified form (title III). Title I of the proposed Act contains general provisions relating to the insurance programs, such as ones dealing with interest rates and maximum mortgage amounts. Title II contains provisions relating to insurance funds, insurance premiums and other fees. Title VI deals with insurance claims, and title VII contains miscellaneous provisions.

A full identification of the variations from existing law occurring as a result of the consolidation and simplification is contained in the accompanying detailed cross reference table. Some of the more important changes are discussed in this statement, particularly those involving the subsidized housing programs, while other changes are used to illustrate the consolidation process. Also accompanying this statement is a table showing the volume of insurance activity under various existing programs, which serves to indicate the degree of usefulness of many of the programs in their current form.

Many of the technical terms used throughout the Act are defined in one provision, in contrast to the scattering of definitions found in the National Housing Act. The terms "first mortgage", "mortgagee", "mortgagor"